Posted on: 15th Mar, 2012 02:44am
One key determinant of your loan eligibility is your credit score. If you have a perfect score, you may be approved for a mortgage loan quite easily. Again, if you have a less than perfect credit score, you may not be eligible to get approved for a mortgage loan at all or you may be eligible for the loan at higher rates. Anyways, irrespective of your age, if you make timely payments and if you do not default at all, your credit score receives a boost.
Credit score is a three digit number which is a reflection of your creditworthiness. Lenders take this ratio very seriously while offering you a loan. Anyways, you may have a good credit score despite the fact that you are very young, provided that you manage your debt accounts wisely. Again, you may be very old but you may still have a very poor credit score in case you can’t handle your debt accounts properly. In other words, your age does not have any direct relation with your credit score.
Here however it is to be noted that one important determinant of your credit score is your payment history. In fact, your payment history has a weight of 35% in the overall determination of your credit score. If you are too young, it is quite evident that you don’t have a very long payment history and without a substantially long credit history, you can’t influence your credit score much. Again, if you are a middle aged person or an old person, then you have a long credit history and moreover you get enough time to influence your credit score by establishing credit records.
Credit score is a three digit number which is a reflection of your creditworthiness. Lenders take this ratio very seriously while offering you a loan. Anyways, you may have a good credit score despite the fact that you are very young, provided that you manage your debt accounts wisely. Again, you may be very old but you may still have a very poor credit score in case you can’t handle your debt accounts properly. In other words, your age does not have any direct relation with your credit score.
Here however it is to be noted that one important determinant of your credit score is your payment history. In fact, your payment history has a weight of 35% in the overall determination of your credit score. If you are too young, it is quite evident that you don’t have a very long payment history and without a substantially long credit history, you can’t influence your credit score much. Again, if you are a middle aged person or an old person, then you have a long credit history and moreover you get enough time to influence your credit score by establishing credit records.
To me it is very unusual if a 20-25 year old has a score that is higher than 680-700. I have known some of the 20-25 year olds and they have credit score above 700 and have a thin credit file. Would it be safe to assume the average credit score for 20-25 year olds would be no higher than maybe 680-685?
Hi Soloman,
A good credit score won't depend upon a consumer's age. It will depend upon the fact as to how well the consumer is managing his/her debt accounts. A thin credit file with timely payments will lead to a higher credit score compared to a fat credit file with delinquent payments.
Thanks,
Jerry
A good credit score won't depend upon a consumer's age. It will depend upon the fact as to how well the consumer is managing his/her debt accounts. A thin credit file with timely payments will lead to a higher credit score compared to a fat credit file with delinquent payments.
Thanks,
Jerry
Hi Soloman,
I agree with Jerry here. A good credit score won't depend upon age. It will depend upon your ability to manage your debt accounts. If a young consumer makes timely payments on his/her debts and does not make late payments or does not become delinquent on his/her debts, then he/she will be able to maintain excellent credit score.
Thanks
I agree with Jerry here. A good credit score won't depend upon age. It will depend upon your ability to manage your debt accounts. If a young consumer makes timely payments on his/her debts and does not make late payments or does not become delinquent on his/her debts, then he/she will be able to maintain excellent credit score.
Thanks
Whether you are a 20 year old young man or a 65 year old senior citizen, your credit score can be anywhere in the range 380 t0 850. You can achieve this with proper management of your debts. With timely payments and by following some financial best practices you can improve your credit score.
People with an “average†score will still default a given percentage of the time. That percentage determines whether you are a good risk for a lender, and how much they need to charge you in interest to make it worthwhile to lend to you.
A credit score isn't based on age. The only thing that would be based on age would be how long you've had to build a credit history. A 20-25 year old may have a higher credit score than someone older if they've build they're score substantially and vice versa.
However, average credit scores are showing an increase as the age bracket increases. It makes sense because it takes lots of time and effort to build a good score and the younger population just haven't had that chance yet. The trend at the moment seems to be an average credit score of 720 for those 55 and older and 640 for people 25 and under.
However, average credit scores are showing an increase as the age bracket increases. It makes sense because it takes lots of time and effort to build a good score and the younger population just haven't had that chance yet. The trend at the moment seems to be an average credit score of 720 for those 55 and older and 640 for people 25 and under.